“Consumers are considerably less pessimistic about current business and labor market conditions,” said Lynn Franco, director of the Conference Board’s consumer research center. “Despite further increases in gas prices, they are more optimistic about the short-term outlook.”

Economists polled by MarketWatch had expected a reading of 64.5 for February on improving employment figures and higher stock prices. See economic calendar. According to the U.S. Labor Department’s most recent monthly employment report, total nonfarm payroll employment rose by 243,000 in January, while the unemployment rate fell to 8.3%. Read more about payrolls.

Generally when the economy is growing at a good clip, confidence readings are at least 90.

“At this stage of the cycle, stronger job creation is important to link the improved fortunes of U.S. corporations to the financial situation of U.S. households and this report is another sign that this is beginning to fall into place,” said analysts at RDQ Economics, a New York-based research firm.

However, rising gas prices could cut future readings, analysts warned. There’s “still time for a modest hit over the next month or two,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics, an analysis firm in Valhalla, N.Y.

Gas prices have gained about 28 cents per gallon this month, reaching $3.72 a gallon in the week ended Feb. 27, according to U.S. Department of Energy data on weekly retail gasoline and diesel prices.

Details

An index of consumers’ views on the present situation rose to 45 in February from 38.8 in January. Those saying jobs are “hard to get” fell to 38.7% in February from 43.3% in January. Those saying jobs are “not so plentiful” rose to 54.7% from 50.5%, and those saying jobs are “plentiful” rose to 6.6% from 6.2%.

A gauge of consumers’ expectations rose to 88 in February from 76.7 in January. Those expecting fewer jobs in six months fell to 16.9% in February from 19.1% in January. Those expecting more jobs rose to 18.7% from 16.4%, and the rest expect the same employment.

Consumer spending is the largest portion of the economy, and economists watch confidence readings to get a feel for the direction of spending. According to the Conference Board report, those with plans to buy an automobile within six months rose to 10.5% in February from 10% in January. Those planning to buy a home fell to 4.1% from 4.3%. Those planning to buy major appliances fell to 44.4% from 48.4%.

Elsewhere Tuesday, data indicated that U.S. home prices in December fell to their lowest level since the housing crisis, as a gain in activity isn’t yet being matched by rising values. Read more about home prices.

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